Smart Ideas

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Contending with the rising costs of construction

According to Statistics Canada, the construction price index for residential buildings has increased by 56 per cent between Q1 2020 and Q2 2022. While this index is not entirely predictive of cost increases related to repairs on existing residential buildings, it does provide some proxy for those considering capital upgrades. So what’s underpinning this surge in costs? There are several known factors, including the labour shortage, material shortages, supply chain challenges, global events, and even extreme weather events. With so much uncertainty impacting every step of the construction process, experts advise that building owners take the right steps before launching their next capital repair project.

1. Plan ahead. Once you’ve secured your contracts, have the contractor order construction materials immediately so that there are no hold-ups when your project is ready to go.

2. Take possession of materials as soon as possible. This step will help mitigate the risk of costs rising further between the time of the contractor bidding the project and securing the materials. Contractors can typically store these materials in their facilities or on site to ensure they have them available when needed. 3. Avoid deferring projects, if possible. There are no guarantees that prices will come down, or that more contractors will be available at a future date. Proceed according to your schedule unless there is a significant hurdle preventing you from doing so.

4. Contact a professional Always consult a building expert before undergoing a restoration project. There are numerous assessments available to help owners determine what’s needed, what will be needed, and what work can be done simultaneously to reduce costs and inconveniences.

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